The deal, if happens, will help Reliance Capital Asset Management to expand its reach in the exchange-traded funds (ETFs) business as around 97 per cent of Goldman Sachs’ MF assets are in ETFs.

However, Reliance is yet to begin formal talks on the deal, Sundeep Sikka, chief executive of Reliance Asset Management, told the paper.

As on December 31, 2014, Goldman Sachs Asset Management Co (India) Ltd had just around $1.1 billion in assets under management (AUM).

Earlier this month, media reports had said that Goldman Sachs is planning to sell its mutual fund business and is in talks with the US-based ETF asset manager WisdomTree for the same.

In India, Goldman Sachs MF manages 13 schemes, which include seven equity-oriented ETFs, one liquid ETF (GS Liquid BeES), one gold ETF, one international ETF, two equity schemes and an open-ended debt scheme.

RCAM is part of the public-listed Reliance Capital, the flagship financial services company under Anil Ambani-led Reliance Group. RCAM is one of the largest asset managers in India managing Rs 2,18,338 crore ($36 billion) as on September 30, 2014, across mutual funds, pension funds, managed accounts etc.

Last year, Dutch financial services group ING had sold its stake in ING Investment Management to Birla Sun-Life Mutual Fund. Prior to that, HDFC Mutual Fund acquired the assets of Morgan Stanley Asset Management while Fidelity exited by selling its assets to L&T Finance.